Digging Into Two Energy Names
One more leg lower? I don't think we can phrase it that way since one more leg lower implies it will be the last leg lower. I would rather say coal has started yet another leg lower today. Of course, there are a few names including Peabody Energy (BTU), Arch Coal (ACI) and Consol Energy (CNX) that don't look too bad, but I won't try to fool anyone by saying the charts look good. These two just haven't completely broken down like Alpha Natural Resources (ANR), Cliff Natural Resources (CLF) and Walter Industries (WLT).
A while ago, actually , on May 24, when CLF was trading just below $50, I received a request from an astute subscriber to look closer at CLF. I didn't like what I saw then, and I still don't like what I see now -- even with CLF trading some 33% lower today than it was back at the end of May. The chart just keeps getting worse and worse rather than showing any signs of a bottom....246 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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